Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Full Definition
A listing agreement is a legally binding contract that creates an agency relationship between a property owner (the principal) and a licensed real estate broker (the agent). It authorizes the broker to market the property and find a buyer. The three main types are: Exclusive Right to Sell (the broker earns commission regardless of who finds the buyer — the most common type), Exclusive Agency (the seller can sell themselves without paying commission), and Open Listing (seller can list with multiple brokers; only the one who finds the buyer earns commission). All listing agreements must specify the listing price, commission rate, and expiration date.
Real-World Example
A seller signs an exclusive right-to-sell listing agreement at 6% commission with an expiration date of 90 days. Even if the seller finds the buyer themselves, the broker earns the commission.
How Listing Agreement Appears on the Real Estate Exam
Common question types, tested concepts, and what to watch out for
Know the three types of listing agreements and which is most common (Exclusive Right to Sell). Understand that a net listing — where the broker keeps everything above a minimum price — is illegal in most states.
Related Terms
More Agency & Representation Terms
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